Vt. takes step in compliance with federal health care law

Officials mark opening of Vt. Health Co-op

President Barack Obama's Affordable Care Act includes a part that calls for states to offer non-profit health care coverage. That led to the formation of the Vermont Health Co-op in June. On Tuesday, the company officially opened its doors.

President Barack Obama's Affordable Care Act includes a part that calls for states to offer non-profit health care coverage. That led to the formation of the Vermont Health Co-op in June. On Tuesday, the company officially opened its doors.

In the next year or so, CEO Christine Oliver said the company will be focused on team-building and planning.

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"You'll be hearing a lot more about us in the 12 months to come," she told a group at the Co-op's grand opening. "We're building a new insurance company from the ground up. New culture, new expectations, new leadership."

The Co-op will be the state's newest health insurance company. The idea is anyone covered by their health plan will also be a company owner.

"At the Co-op the incentives will be built in because you will actually own your health," said Oliver.

Because it is a non-profit, organizers said any extra money made will go back into consumers' pockets as better benefits or lower premiums.

"This is extremely exciting for Vermonters. It is not a business as usual model," said Mitch Fleischer, president of the Co-op's board of directors.

Oliver said it's too early to tell how much members would have to pay for health coverage. The goal to keep costs as low as possible, but officials said they can't ensure their rates won't be competitive with that of private insurance companies.

Still, many tout the benefits of an insurance option driven by Vermonters themselves.

"The biggest asset that we have is keeping our dollars here in Vermont to be recycled," said Rep. Peter Welch.

But as the Co-op opens its doors, it could be closing them in a few years. Gov. Peter Shumlin's single-payer plan is getting ironed out. It is state-operated and would cover all residents.

"If we get to that system, the Co-op will figure out how to be relevant in that system," said Oliver. "If we don't, we'll close our doors and walk away."

Oliver said she and the other Co-op officials are definitely on board with health care reform and they hope to be a helpful aid to the state should single-payer go into effect.